The House Ways and Means Committee on Monday approved a bill seeking to establish the Maharlika Investment Fund in preparation for plenary deliberations next week.

The committee, which is chaired by Rep. Joey Salceda, approved the tax provisions drafted by the panel and adopted by the technical working group (TWG) before the meeting.

In a statement released Monday, Salceda said the tax provisions ensure that the benefits of the savings go purely towards the investment fund, increasing potential returns for the Social Security System and the Government Insurance Service System (GSIS).

“Some P680 million in tax savings will inure to the fund every year as a result of this exemption. That goes towards making the SSS and GSIS funds more robust. That means more funds for pensions,” Salceda said.

Salceda during the committee hearing proposed additional safeguards to the measure which would ensure that all exemptions granted in the bill be used “actually, directly exclusively and solely” for transactions of the Maharlika Wealth Fund Corp. (MWFC) and Maharlika Investment fund, and not for the “MWFC executives and/or employees, third parties, and other distinct taxable entities.”

He also added a provision that makes one Government Service Insurance System (GSIS) or Social Security System) pensioner or member part of the board of directors.

Salceda also proposed a limit exemption to "minimum prescribed periods for stages of procurement and to restrictions on foreign or foreign-owned contractors,” in a provision that allows exemption from the Procurement Law.

Under Republic Act 9184, no government procurement will be done unless it is based on the procuring agency's annual procurement plan, which should be approved by its head and be consistent with its approved yearly budget.

On the exemption from the GOCC Governance Act, Salceda proposed retaining the Fund in the coverage of “Sections 19, 25, and 26 on the fiduciary duties of the board and officers, full disclosure, and special audit."

Salceda earlier said that the House expects the Marharlika Investment Fund bill to be approved on final reading by December 12, before the Congress goes on its Christmas break on December 16.

The Maharlika Investment Fund plans to secure P275 from government financial institutions, including state-owned pension funds and banks to be used for national investments. Jaspearl Tan/DMS